How to Start a Moving Company in 2021?

The moving industry has seen new highs in the last few decades. People are moving to new and bigger cities in search of a better career and high quality of life. The business related to the physical moving services is always in demand so starting a moving company is a good idea to make big profits. Moving companies help people and businesses to move and relocate their goods. Like any other business, you need to deeply understand the industry. If you are planning to start a moving company, here is a guide that can help you set up your business in one of the most competitive industries i.e. moving.

Type of Moving Companies

Moving companies provide various types of moving services and the first thing that you need to decide is to understand what kind of services you are willing to offer. You can choose anything like only labor, labor with transportation, and full moving services. Then, decide if you want to work within the city or you want to do it at a national level. For instance, if you want to provide interstate moving services, you need to have an appropriate work permit for both states. For a long-distance move, people often search for the best out-of-state moving companies at Pricing Van Lines, a reliable moving service platform. 

Following is a list of types of moving companies and what they do:

Local Movers: Local movers often work within a radius of 100 miles and generally deal in residential moves. They are mostly authorized to work within the state and are not permitted for outstation services. These companies are better options for relocating houses or residential items like furniture and other storage material.

Long-Distance Movers: Long-distance moving companies can work within the country and/or international shipping. These types of companies have to follow more federal regulations as compared to local movers. You will need to understand and abide by the federal transportation requirements, international freight policies, and shipping requirements.

Commercial Moving Companies: Commercial movers provide relocation services to businesses and other commercial entities. They are well-trained and skilled in handling office equipment and data. These companies have their own working complexities including navigation of professional spaces, handling heavy electronic equipment and office furniture, and dealing with both small and big business owners.

Automotive Transporters: Certain moving companies specialize in moving vehicles. These moving services are generally included in long-distance and must have trained fleet to handle the job well.

Now, let’s discuss what all you need to start your own moving company:

Choose Your Speciality Services

You can either choose a particular moving service or can even offer hybrid services. Though providing hybrid or multiple services can get you more profit, it may not be easy to handle in the beginning. Also, the investment and federal requirements for different business types will be different, for instance, you will need a national permit to provide services in other states that is not the case for local movers. So, you need to decide the type of services that you are willing to provide to understand the legal aspects of it. This will also enable you to target your focus on one particular business.

Business Structure

To start a business and take it to the operational stage, you need to set up the formal structure of your business. Businesses have varied recognized models including Sole Proprietorship, Partnership, Corporation, and Limited Liability Company (LLC). While Sole Proprietorship is the most flexible business model for owners, it comes with a lot of liability and personal responsibility. The partnership model includes general and limited partnerships related to the payment of business debts. The corporation model of business keeps its owners’ personal and business obligations separate so it protects their personal properties from business losses. LLC companies have to pay higher start-up fees than other business structures but this business model also provides corporate liability protection.

Legal Documentation

Make sure you understand and learn all the necessary filings and paperwork related to your new business. You may have to apply for specific licenses that you may need to obtain to legally operate in a particular area. Make sure you start working with the customers only after completing all the legal documents to avoid any fines.

You will also need to establish your tax status to obtain a legal working license for your company. Make sure you get an Employer Identification Number from the Internal Revenue Services that will further be needed to open and operate company bank accounts and file taxes. You will also need to comply with the Department of Transportation if starting a long-distance moving business.

Prepare for the Competition

Though there is high demand for moving services, there is high competition too as there are many moving companies that are offering similar services. Make sure you are aware of and prepared to face your competitors well. Do a lot of market research related to the services and packages offered by other moving companies. Provide the best possible services at reasonable prices to attract customers.